PUCO approves Columbia’s natural gas supply auction

COLUMBUS, OHIO (Feb. 14, 2012) – The Public Utilities Commission of Ohio (PUCO) today approved the results of Columbia Gas of Ohio’s auction for its standard choice offer (SCO). The auction secured natural gas supplies for Columbia’s customers for the period April 1, 2012 through March 31, 2013 and established a retail price adjustment of $1.53 per thousand cubic feet (Mcf).

Columbia’s SCO rate changes monthly and is calculated as the sum of the retail price adjustment plus the New York Mercantile Exchange (NYMEX) month-end settlement price. The price adjustment reflects the winning bidders’ estimate of their cost to deliver natural gas from the production area to Columbia’s service area. The new price adjustment is 35 cents less than the current adjustment of $1.88 per Mcf.

The SCO will apply to Columbia’s non-choice customers and replaces the standard service offer (SSO). The SCO will continue to allow choice-eligible customers the option to enroll with an energy choice supplier of their choosing, join a government aggregation buying group, or remain on the SCO.

Each SCO customer’s bill will indicate the certified retail natural gas supplier that is responsible for providing the customer’s natural gas. Columbia will continue to deliver natural gas to all customers, offer payment plans, and handle all emergency and customer service calls. Those enrolled in the Percentage of Income Payment Plus plan, government aggregation group customers and those already enrolled with an energy choice supplier are not affected.

World Energy Solutions, Columbia’s auction manager, conducted a descending clock auction for the SCO on Feb. 14, 2012. 13 bidders registered to participate and five winning bidders will supply Columbia’s SCO customers beginning April 1. Columbia, PUCO Staff and the Office of the Ohio Consumers’ Counsel jointly monitored the auction.

The Commission agreed with PUCO Staff’s post-auction conclusions that the auction results were reasonable. The Commission order provides that the names of the winning auction bidders will not be provided for a period of 15 days. This period of confidentially protects the bidders’ positions in negotiations with pipeline companies for the incremental capacity necessary to meet their obligations as standard service offer suppliers.

Columbia will conduct another round of auctions for the period April 1, 2013 to March 31, 2014 in February 2013. A copy of today’s Commission opinion and order is available at www.PUCO.ohio.gov. Click on the link to the Docketing Information System and enter the case number 08-1344-GA-EXM.

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The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe, and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.

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